Australian Lamb Exports Surge in US Amid Middle East Disruptions

Australian lamb exports are seeing record growth in the United States, where a new wave of demand for high-quality protein has led analysts to compare the trend to the rise of Wagyu beef. This surge is crossing generational lines as American consumers increasingly seek out premium proteins.

In contrast, the Middle East market faces severe logistical challenges due to regional conflict. Damian Storie, head of Classic Fine Foods, reported at LambEx26 in Adelaide that shipping routes avoiding the closed Strait of Hormuz have increased transit times from 28 days to as many as 50 days. These diversions around the Cape of Good Hope have forced a shift from chilled to frozen products and increased container costs by $12,000, resulting in food service price hikes of 20% to 30%.

Market stability in the Gulf states has further deteriorated as luxury hotel occupancy rates in Saudi Arabia and the United Arab Emirates have dropped to 20%. Despite these hurdles and a current lack of bookings, long-term projections remain optimistic. A US$15 billion hospitality expansion and increasing regional affluence are expected to drive significant volume growth by 2030. To maintain its market-leading position, Australia is focusing on traceability, Halal certification, and correct Arabic labeling to secure high-end contracts.